From fruity RTDs to premium beers, a strong alcohol line-up means everyone can celebrate this special time of year in style.
By Sarah Britton
If there’s one time of year when even the most uptight folk let their hair down, it’s Christmas. And what better way to celebrate than with a fruity RTD, offering consumers a full spectrum of fun flavours in the convenience of a can.
Over the Christmas period last year, RTDs in GB Convenience grew significantly, up +20% in value sales, adding an extra £8m to the alcohol category, with pre-mixed spirit RTDs in particular performing well in the Christmas 2023 period, states Red Star Brands, which distributes vodka-based RTD Four Loko.
Coming into Christmas 2024, Red Star Brands is confident that growth momentum will continue. “Premium-priced RTDs have grown faster than any other segment in the last two years, with an increase in spirit-based offerings and an increase in higher-ABV product launches – and this is a trend that we expect to continue over Christmas and the New Year,” predicts Andy Ferguson, Business Development Manager Scotland, Red Star Brands. “Pre-mixed spirits are the biggest sub category within RTDs, with a 58% value share and growing at +11.9% YoY [IRI RTD L52wks].”
The firm has just launched a Black variant with notes of kiwi and an ABV of 8.4%. “With the festive season ahead of us, this is the perfect time for consumers to get their hands on this limited-edition release and embrace the season with an exciting new taste sensation,” says Ferguson.
He observes that demand is strong for high ABV drinks. “We’re seeing changes in drinking habits across the board with at home, or at least out-of-pub/club drinking, going from strength to strength, but that does not mean consumers are prepared to accept low enjoyment alternatives,” he says. “Scottish consumers demand both quality and value with Four Loko providing two pub/club strength, high quality serves in every can.”
He adds that fruit flavours are proving particularly popular, especially at this time of year when people enjoy a change from their regular purchases and look for quality RTDs which offer all the convenience of a pre-mix to create a show-stopping party drink and add to the festive fun.
Premiumisation is another important trend to be aware of, highlights Ferguson. “For many households affected by the cost-of-living crisis and a squeeze on spending, the rising price of food and drink will be a major concern,” he says. “While shoppers may be making savings on large bills, smaller purchases such as alcohol is an area where traditionally they are happy to spend a little more.”
Seasonal sales spike
High ABV RTDs are a good seller for Hafiz Ahmad, manager at Sunny’s Premier in Stirling, who is looking forward to a festive sales spike on alcohol. “We try to bring in products that the big stores don’t have,” he says. “That’s how we’re doing well because people like to come here to see some unusual products.
“We’ll focus on alcohol at Christmas. We sell a lot of cocktails. The strong ones from Buzzballz are really popular. They don’t have them in the big supermarket near here yet, though they might sell them in the future. They’re popular in America.
“The AU cocktails and cans are our biggest sellers.”
AU’s 200ml nitro-infused Strawberry Daiquiri and Blue Hawaiian cocktails boast an 8% ABV, whilst BuzzBallz provide 2.7 units per serve.
Andrew Niven, Strategic Market Intelligence Manager at The Knowledge Bank, has been watching the RTD market with interest. “Scotland stands out as a key player in the RTD market, over-trading by £29.2m. Consumers’ preference for higher-strength options, responsible for over a quarter of RTD sales in Scotland, has helped solidify the region’s significant taste for the category.”
He highlights that vodka-based drinks are incredibly popular among UK drinkers, representing nearly one-third of RTD sales.
“Consumers are looking for a broader taste range within RTD, and unexpected flavours are seeing a considerable increase in value across the UK: white soda has increased by 205% and blue raspberry by 67%. To capitalise on this, retailers should be looking beyond traditional cocktails to fill their shelves.
No rest for WKD
WKD is confident its two new flavours from sub-brand WKD X will add to the festive fun this season. SHS Drinks attributes the sub-brand’s success to the continued market potential of high energy/higher ABV ‘enhanced RTDs’. The caffeine-containing 7% ABV energy drink-inspired RTD is now available in Purple Grape and Citrus Ice, which join the existing line-up of Blue Raspberry, Mango Passion, and Dark Berry.
WKD X volumes are currently +88% year-on-year [Nielsen GB Impulse volume (L) & units MAT to 10.08.2] and +106% over the last quarter [Nielsen GB Impulse volume (L) & units 12 weeks to 10.08.24]. This strong upward trajectory is set to benefit from a notable further step-change with a new listing in Morrisons Daily stores with two WKD X variants – Blue Raspberry, and Mango Passion – now stocked in 650 of the chain’s outlets.
Alison Gray, Head of Brand – WKD at SHS Drinks, says: “WKD X has proven to be a great success since its introduction. The 18 to 24-year-old core target audience has really bought into what the range stands for: a convenient way to get a caffeine fix. Consumers are well versed in mixing alcoholic drinks with energy drinks, but WKD X delivers the convenience of a pre-mixed format from a nationally recognised brand that’s known and loved.”
Also opting to bring out a new flavour in time for the festive season is VK, which has brought back its Chocolate Orange edition. VK, which claims to be the UK’s most popular pre-mixed cocktail for students [NUS Drinks Tracker 2023 and CGA 2023 P12 volume data] – is looking forward to causing a commotion this yule. It acknowledges that the drink, which comprises zesty orange flavour with chocolate notes on a base of triple-distilled vodka, is set to cause a division in opinion.
The festive flavour is part of the limited-edition 10 x 275ml VK Festive Mixed Pack, which has an RSP of £9.
Holly Bolus, Senior Brand Manager for VK, said: “Christmas is a key social season for our audience, with our customers stocking up on VK for pre-drinks and festive gatherings. Our seasonal flavours are always a hit, typically selling out fast, and by bringing back a fan favourite in VK Chocolate Orange, we’re making sure VK remains a go-to choice for nights out in the run up to Christmas and the New Year.”
Further marketing activity includes an on-pack promotion, giving shoppers the chance to win one of 70 exclusive, money-can’t-buy, branded Christmas jumpers – a seasonal accessory that’s set to boost engagement and keep VK top of mind throughout the festive sales period.
Premium potential
Over in spirits, Pernod Ricard UK is ramping up its festive marketing efforts, anticipating a resurgence in consumer confidence after a challenging year.
Despite spend being tight for many, Premium+ Spirits have consistently outperformed Standard offerings throughout 2024, and the subsegment could act as a vital margin driver in the run up to Christmas, believes Pernod.
Off-Trade Channel Director, Chris Shead, says: “Since last Christmas, consumer confidence has been on the rise and the outlook for the final month of 2024 is positive. Gifting and hosting remain two key trends and retailers should focus on increasing space in-store for Premium Spirits that act as the perfect gift or cocktail ingredient when wanting to show off in front of friends and family. Where possible, we encourage retailers to prioritise categories that have been capturing the hearts of consumers and this year, our big winners have been Altos Tequila, Kahlúa and Bumbu Rum, and we expect our Champagnes, G.H. Mumm and Perrier-Jouët, to be the toast of choice for festive parties this year.”
To inspire consumers and drive sales, Pernod Ricard UK has refreshed its YouTube Channel, ‘Cocktails Etc.,’ which offers bite-sized content that can be easily followed at home. The channel features fun, festive tutorials of how to create the most-searched winter cocktails including an Absolut and Kahlúa Espresso Martini and The Glenlivet Hot Toddy.
In addition, Pernod has invested in Jameson Black Barrel, elevating the product with a new label and giftbox, which highlight its premium credentials. A global campaign that features a short film led by Bullet Train actor, and rumoured next James Bond, Aaron Taylor-Johnson, is running on video-on-demand platforms and social media, as well as on the big screen, to coincide with the release of Gladiator 2.
Bumper beer sales
Beer sales are also set to swell this season, with 22% of total beer sales taking place during the 12-week Christmas period [Circana Total Impulse 12 wk end 25/12/23], states BrewDog. “Christmas 2023 saw beer sales grow +11.3% in value and +0.6% in volume vs the prior year [ibid]. Across total beer, value growth continued to exceed volume growth as duty and cost of living impacted shopper behaviour,” says Caitlin Brown, Off-Trade Category Development Executive, BrewDog.
Alexander Wilson, Category & Commercial Strategy Director, at Heineken, agrees that beer sales at Christmas are big business. “Christmas and New Year’s is one of the biggest trading periods for the beer and cider category, worth a huge £265m in the convenience and wholesale channels [Nielsen IQ ScanTrack],” he says, pointing out that beer claims the lion’s share of sales with a £212m share, while cider generates £53m.
Wilson advises retailers to stock up on festive bestsellers within the convenience channel. Top of the Christmas list is Foster’s, worth £13.8m, followed by Strongbow, worth £13.5m, Heineken, worth £8.8m, Birra Moretti, worth £6.2m, Cruzcampo, worth £3.1m, and Inch’s, worth £1.7m [Nielsen Data 8 wks WE 30.12.23]. “When it comes to bestselling formats, we have identified single bottles, four-packs and mid-sized packs to be the most popular during the season [ibid], as they cater to varied occasions,” he says.
He adds that premium brands are also worth some shelf space. “While all segments are valuable in the lead up to Christmas, premium does slightly over index as people look for reasons to indulge in something extra special, and that’s where brands like Old Mout and Birra Moretti will shine,” he says. “These brands can also make great ‘gifting options’, especially if consumers are looking to purchase something for their host, with the packaging and positioning lending itself to more premium occasions.”
Stay crafty
There’s plenty to play for in craft beer too. “Christmas 2023 saw the craft beer category continue to grow its share of total beer sales at +1.2% – outperforming total beer in both value (+12.4%) and volume growth (+1.5%) [Circana Total Impulse 12 wk end 25/12/23],” states Brewdog’s Brown.
Last year the firm welcomed new lines Black Heart and Wingman, which gave the brand strong momentum approaching the festive season. This resulted in impressive sales of +18.2% value and +9.9% in volume [ibid].
“We know that BrewDog shoppers are extremely valuable, spending +28.8% more on their total basket than average Beer shoppers [Convenience Retailer X Shopper Loyalty Data 52 W/E 25.03.23]. So, listing top-performing craft beer SKUs, such as BrewDog Punk IPA, Hazy Jane New England IPA and Mixed multipacks as part of a Christmas display will help to upweight total spend in-store,” she suggests.
With many shoppers looking for premium options to celebrate the special occasion, craft beer offers retailers a great opportunity to drive sales into a more profitable category, claims Brown. “The BrewDog Mixed 330ml can 8-pack, featuring our bestsellers, is a particularly important SKU over the Christmas season,” she notes. “Growing +5.5% vs YA it offers shoppers the opportunity to trial different styles of beer for sharing occasions over the festive period [Circana Total Impulse 12 wk end 25/12/23]. However, BrewDog Punk IPA is the flagship brand, holding 36% of the category whilst seeing strong value growth (+3.9%) in the run up to Christmas. Top selling formats are 4-pack (worth 27.1% vol of craft) and 8-pack (4.8% volume share) [ibid], making them both an absolute must-stock.”
Stout’s resurgence continues and over the 12 weeks to Christmas 2023, it saw a 26.8% uplift in value and 10.3% uplift in volume. This is in part thanks to the launch of BrewDog Black Heart, which made its mark on the category in 2023 and is now worth 14% of Guinness Draught [Circana latest 12 wks data up to 12.05.24 Total Market].
With socialising and entertaining more frequent over the festive period, larger 8+ can count packs are the key formats for craft beer, with 12.1% of sales going through this format at Christmas [Circana Total Impulse 12 wk end 25/12/23] vs an average of 9.4% over the remainder of the year [Circana Total Impulse MAT 12/05/24], observes BrewDog. As a result, 8-12 count packs sell +41% in value and +30.1% in volume over this period [Circana Total Impulse 12 wks to 25/02/23 vs MAT 12/05/24].
With a strong range of bestsellers, new flavours and larger pack sizes, retailers and their customers can look forward to a very merry Christmas indeed.
